Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US stocks rose today, but not enough to reverse the S&P 500’s worst week since September, as stable sentiment from the central bank counterbalanced Trump’s seesawing trade policies.

• 📈 | One Notable Gainer: Shares of Walgreens $WBA ( ▲ 0.27% ) popped after it (finally) confirmed plans to go private in a $10B deal with Sycamore Partners.

• 📉 | One Notable Decliner: Costco $COST ( ▼ 0.97% ) failed to replicate its rival BJ’s $BJ ( ▼ 0.51% ) success from yesterday. Its shares tumbled after missing on earnings, despite beating revenue expectations.

Sponsored by Cadiz

You Can Lead an Investor To Water…

The stock market is looking drier than a desert these days. But investors might just find an oasis in Cadiz, Inc. (NASDAQ: CDZI).

Cadiz is building the Southwest's largest water pipeline, the Mojave Groundwater Bank Project. It aims to leverage its 45,000 acres of land in California and 2.5 million acre-feet of water supply to increase clean water access where it is needed the most.

The project made headlines late last year when a local tribe announced plans to invest up to $50 million in it. This week, it did again, following a separate investment of up to $175 million from a lead equity investor.

According to CEO Susan Kennedy, the investment is the key for the pipeline to become “operational on an aggressive schedule”. In other words, Cadiz is on the move toward its full potential — and moving quickly.

Institutional and private equity investors are in on Cadiz. Will you join them? You know what they say. You can lead an investor to water, but you can’t make them drink.

MARKET MOVERS

Broadcom, HPE, Paramount

$AVGO ( ▼ 1.67% ) Broadcom shares soar as earnings top estimates on demand for custom AI chips (CNBC)

$HPE ( ▼ 0.94% ) Hewlett Packard Enterprise Plunges Most Since 2020 on Weak Profit Outlook, Job Cuts (Bloomberg)

$PARA ( ▼ 1.03% ) Judge may consider blocking Paramount-Skydance deal (Paramount)

$LLY ( ▲ 0.1% ) US judge denies injunction, restricting copies of Lilly weight-loss drug (Reuters)

$GAP ( ▼ 3.82% ) Gap stock surges on fourth quarter estimates, retailer signals it could beat Trump tariffs (YF)

OVERHEARD ON THE STREET

WSJ: The US added 151,000 jobs in February, short of expectations but showing steady growth.

YF: The unemployment rate rose to 4.1% in February, while federal government employment dropped by 10,000 amid DOGE cuts.

Reuters: Morgan Stanley $MS ( ▼ 3.08% )  reduced its growth forecast for the US economy in 2025, citing the impact of tariffs and higher inflation.

CNBC: Fed Chair Powell stated the central bank is waiting for clarity on President Trump's policies before making any decisions on interest rates.

CNN: Trump threatened new tariffs on Canadian lumber and dairy, including a 250% tax on the latter, promising to match Canada's tariffs dollar-for-dollar.

TOMORROW’S TRADE IDEA, TODAY

Is Wayfair Building Itself a Win?

Well On Its Way

Wayfair $W ( ▼ 4.94% ) is in need of a win. It is currently trading near a two-year low, around the same levels seen in the early days of the pandemic.

But Jefferies $JEF ( ▼ 3.92% ) believes the furniture retailer is well on its way to building a win for itself.

The firm upgraded the stock to Buy and raised its price target to $47, suggesting a 34% upside from today’s closing price.

Top-Tier Tailwinds

Despite its stock’s stagnation, Jefferies analyst Jonathan Matuszewski says the company is 30% bigger than it was at the pandemic’s start, and its EBITDA has ballooned nearly 10% since then as well.

Its current price does not reflect Wayfair’s “top-tier market share gains,” the analyst argues, and is skewed by industry-wide headwinds. Matuszewski also pointed to the company’s new paid loyalty program and physical store expansion as potential catalysts for EBITDA growth.

Modern Makeover

Citi $C ( ▼ 2.12% ) also expressed bullishness on the stock today, after Wayfair announced it will cut hundreds of employees from its tech team, thanks to its investments in modernizing its operations. The bank assigned an even higher price target of $58 for the stock.

According to these banks, at least, Wayfair has the same things going for it as its popular products: solid construction and an attractive price tag.

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ON OUR RADAR

CNBC: Trump is set to sign an executive order that will exclude some student loan borrowers from the Public Service Loan Forgiveness program.

Reuters: Trump also signed an order to create a strategic bitcoin reserve using seized tokens, but it disappointed those expecting new token purchases.

WSJ: The US is likely to ban the Chinese AI app DeepSeek from government devices over national security concerns.

Bloomberg: China is cracking down on scams via intercepted calls and home visits, raising privacy concerns within the country’s vast surveillance state.

CNN: Wendy’s $WEN ( ▼ 2.53% ) is redesigning its Frosty with new customization options as it aims to boost global sales to $18B and expand locations by 15% in three years.

THURSDAY’S POLL RESULTS

Are you bullish or bearish on On Holding (ONON) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜⬜⬜⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “I have a love, hate relationship with On and they just cycled back to love.”

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